#southkoreatosuspendnewleveragedetflistings 🚨 🚨 South Korea Just Hit the Brakes on Leveraged ETFs!
🔥This is what happens when people buy stocks with borrowed money. It causes big problems in the market.
🔥South Korea is showing us what can go wrong when this happens.
The people in charge of money in South Korea, the Financial Services Commission have stopped all single stock leveraged ETFs because the prices of some stocks like Samsung Electronics and SK Hynix were going up and down really fast.
🔥They have made some rules that are very strict.
These rules are:
- (FSC) officially tripled the minimum margin deposit requirement for retail investors trading single-stock leveraged exchange-traded funds (ETFs) tracking Samsung Electronics and SK Hynix.
✅ -They can only use cash to buy these stocks
✅ -They have to buy a lot stocks at one time
✅- People have to learn about these stocks before they can buy them
✅ -Nobody is allowed to advertise these stocks
💥 The point is that when people buy stocks with borrowed money they can make a lot of money if the stock goes up but they can also lose a lot of money if the stock goes down and this can cause big problems, in the market.
💥South Korea is trying to stop this from happening with these rules.
Do you think other countries will do the thing or is South Korea being too careful?
👀 Share what you think about South Korea and leveraged ETFs. Does this rule reduce liquidity of these assets? 👇
#Khan62 #RiskManagement #stocks #Investing
$SAMSUNG
$SKHYNIX $SKHY
$SKy
🔥This is what happens when people buy stocks with borrowed money. It causes big problems in the market.
🔥South Korea is showing us what can go wrong when this happens.
The people in charge of money in South Korea, the Financial Services Commission have stopped all single stock leveraged ETFs because the prices of some stocks like Samsung Electronics and SK Hynix were going up and down really fast.
🔥They have made some rules that are very strict.
These rules are:
- (FSC) officially tripled the minimum margin deposit requirement for retail investors trading single-stock leveraged exchange-traded funds (ETFs) tracking Samsung Electronics and SK Hynix.
✅ -They can only use cash to buy these stocks
✅ -They have to buy a lot stocks at one time
✅- People have to learn about these stocks before they can buy them
✅ -Nobody is allowed to advertise these stocks
💥 The point is that when people buy stocks with borrowed money they can make a lot of money if the stock goes up but they can also lose a lot of money if the stock goes down and this can cause big problems, in the market.
💥South Korea is trying to stop this from happening with these rules.
Do you think other countries will do the thing or is South Korea being too careful?
👀 Share what you think about South Korea and leveraged ETFs. Does this rule reduce liquidity of these assets? 👇
#Khan62 #RiskManagement #stocks #Investing
$SAMSUNG
$SKHYNIX $SKHY
$SKy